WASHINGTON: United States (US) President Donald Trump has removed Federal Reserve (Fed) governor Lisa Cook from her post, citing alleged false statements in one or more mortgage agreements, German Press Agency (dpa) reported.
There was “sufficient reason to believe” that the governor had made false statements, Trump said in a letter to Cook, which he shared on Truth Social on Monday.
Under US law, a president may only remove Fed governors for cause, raising the possibility that Trump‘s decision could face legal challenges.
Trump had indicated his intentions days earlier, telling reporters, “I’ll fire her if she doesn’t resign.” Cook had recently faced scrutiny over alleged irregularities in mortgage applications, which were flagged in a letter from the director of the Federal Housing Finance Agency to Attorney General Pam Bondi.
Trump has for months pressed the Federal Reserve to cut interest rates, a demand that has not been met as policymakers remain concerned about inflation, partly driven by Trump’s import tariffs.
Previous calls from Trump for Fed chair Jerome Powell to resign were unsuccessful.
Cook, an economist, joined the Fed board in May 2022. Her term was scheduled to run until January 31, 2038. Before her appointment, she was a professor of economics and international relations at Michigan State University.
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